"In the case of an uptrend line, you draw the line from the lowest low to the highest low immediately preceding the highest high, making sure that the connecting point you select does not result in the trend line passing through any prices betwewen the two points.
One the trend line is broken, I then look for an unsuccessful test of the recent high. This failure may take the form of prices reversing below the previous high or, in some instances, prices might actually penetrate the previous high by a modest amount and then break. In the case where prices penetrate the previous high, a pull back below that high would serve as confirmation of a failed test of the high. The third and final confirmation of a trend change would be the downside penetration of the most recent relative low."
1st example: 52k
Current Price Action:
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